Infosys Key Ratios

The PAT margin displays a slight decline from an average of 17.53% over the four years, impacting overall ROE negatively despite a marginal increase in net profit. This suggests that profitability pressures could be emerging, worth noting for investors focused on sustainable margins.Asset turnover improved significantly from 1.0863 to a peak of 1.2168, indicating more efficient use of assets in revenue generation, which benefited ROE despite fluctuations in margins.Leverage has generally increased, hitting a max of 1.6195, suggesting that Infosys is utilizing more debt relative to equity. However, this also introduces risk; investors should monitor how this balance influences ROE stability.

Inventory days remain at zero, indicating either a just-in-time inventory system or reporting issues; this raises questions about operational efficiency in managing stock levels and potential risks within the supply chain.Receivable days show variability, with a notable increase from 59.84 to 68.69 days, indicating potential inefficiencies in cash collection that may strain cash flow and operational liquidity.The cash conversion cycle is deteriorating moderately, suggesting that while the company is still converting sales into cash, the trend is towards longer periods, which could affect the company’s overall liquidity and ability to reinvest.

ROE peaked at 32.45% in FY2024, driven by stable profitability performance, though it dropped to 29.40% in FY2025, indicating potential concerns about sustaining high return levels under pressure.ROCE has been consistently higher than ROE, peaking at 44.59%, suggesting stronger efficiency when considering both equity and debt, thus indicating effective usage of capital.ROA reflects solid asset efficiency, but declined in FY2025, suggesting challenges in overall asset utilization. Investors should watch for trends that could affect the company’s ability to leverage assets for returns.